Singapore’s non-oil domestic exports (NODX) increased by 4.8% in 2025, surpassing official estimates of around 2.5%, according to a report by UOB Global Economics and Markets Research. The growth was driven by strong demand for electronics, particularly telecommunications equipment and integrated circuits, despite a 9.4% month-on-month decline in December.
Electronics exports surged by 24.9% year-on-year in December, bolstered by an 81.4% increase in telecommunications equipment exports. In contrast, non-electronics exports saw a modest 0.8% rise, with pharmaceuticals experiencing a significant decline of 7.8%.
The report highlights that exports to South Korea and Taiwan remained robust, reflecting sustained AI-related demand. Exports to China also improved, driven by specialised machinery. However, exports to the US and EU27 weakened, attributed to previous pharmaceutical front-loading.
UOB attributes the overall growth to several factors, including the front-loading of exports amid tariff concerns, AI-driven demand for semiconductors, and easing trade tensions post-Liberation Day in April 2025. The report suggests that AI-related tailwinds could persist into the first half of 2026, supported by improvements in Singapore’s electronics purchasing managers’ index.
Looking ahead, UOB has raised its 2026 NODX growth projection to 3.0%, above the official estimate of 0.0% to 2.0%. However, the report cautions that base effects could impact year-on-year growth figures in 2026.
